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Zillow Group Inc.’s roughly $1.15 billion pile of mortgage bonds tied to its home-buying business has been thrust into the spotlight, after the real-estate giant on Tuesday called it quits on its iBuying home-flipping business.
Zillow Z ZG blamed a faulty algorithmic model for its overpaying of homes purchased in the second half of this year. As a result, the company said it would lay off about a quarter of its staff and anticipates taking a more than $550 million loss on homes it bought.
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